Ann: Zapato-1ST Drilling Update, page-6

Melbana Energy’s Executive Chairman, Andrew Purcell, commented: “We continue to persist
with the drilling of Zapato-1 as we believe there must be a productive hydrocarbon zone underneath
the volcanics we’re drilling through, given the light crude that existed in the shallow section at
Motembo. We chose the Zapato structure for our second exploration well not just for its potential in
its own right but because establishing the validity of this thesis unlocks the potential for similar and
multiple very large plays in adjacent structures in Block 9, such as the A2 lead. As previously
flagged, the massive adjacent Varadero field that has been in production since the late 70s was
drilled on a similar gravity anomaly and that those rocks are the same as what has been thrust
deeper at Zapato. As such, we will continue drilling Zapato in the immediate term with the aim of
discovering a productive hydrocarbon zone. Concurrently, we are planning a return to Alameda so
we can start appraising the material volumes of moveable hydrocarbons we found there. Recent
option conversions have strengthened our cash balance and we are well-placed for an extensive
works program.”